Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2017 | May 03, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EASTERN CO | |
Entity Central Index Key | 31,107 | |
Current Fiscal Year End Date | --12-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,258,233 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 23,581,301 | $ 22,725,376 |
Marketable securities | 215,923 | 0 |
Accounts receivable, less allowances: $389,000 - 2017; $430,000 - 2016 | 19,961,027 | 18,135,792 |
Inventories | 32,505,203 | 34,030,286 |
Prepaid expenses and other assets | 1,979,789 | 1,858,471 |
Total Current Assets | 78,243,243 | 76,749,925 |
Property, Plant and Equipment | 65,444,168 | 64,911,071 |
Accumulated depreciation | (39,643,872) | (38,745,557) |
Property, Plant and Equipment, Net | 25,800,296 | 26,165,514 |
Goodwill | 14,827,388 | 14,819,835 |
Trademarks | 170,037 | 166,312 |
Patents, technology, and other intangibles net of accumulated amortization | 1,686,815 | 1,764,449 |
Deferred income taxes | 4,420,289 | 4,532,361 |
Total Other Assets | 21,104,529 | 21,282,957 |
TOTAL ASSETS | 125,148,068 | 124,198,396 |
Current Liabilities | ||
Accounts payable | 7,964,163 | 7,048,174 |
Accrued compensation | 1,820,392 | 3,112,404 |
Other accrued expenses | 2,139,592 | 1,812,647 |
Current portion of long-term debt | 714,285 | 892,857 |
Total Current Liabilities | 12,638,432 | 12,866,082 |
Other long-term liabilities | 288,805 | 288,805 |
Long-term debt, less current portion | 714,286 | 892,857 |
Accrued other postretirement benefits | 1,046,269 | 1,051,700 |
Accrued pension cost | 26,445,249 | 26,631,438 |
Shareholders' Equity | ||
Voting Preferred Stock, no par value: Authorized and unissued: 1,000,000 shares | ||
Nonvoting Preferred Stock, no par value: Authorized and unissued: 1,000,000 shares | ||
Common Stock, no par value: Authorized: 50,000,000 shares Issued: 8,952,961 shares in 2017 and 8,950,827 shares in 2016 Outstanding: 6,258,233 shares in 2017 and 6,256,098 shares in 2016 | 29,188,131 | 29,146,622 |
Treasury Stock: 2,694,729 shares in 2017 and 2016 | (19,105,723) | (19,105,723) |
Retained earnings | 96,460,017 | 95,631,216 |
Accumulated other comprehensive income (loss): | ||
Foreign currency translation | (1,693,110) | (2,165,081) |
Marketable securities, net of tax | (1,451) | 0 |
Unrecognized net pension and other postretirement benefit costs, net of taxes | (20,832,837) | (21,039,520) |
Accumulated other comprehensive loss | (22,527,398) | (23,204,601) |
Total Shareholders' Equity | 84,015,027 | 82,467,514 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 125,148,068 | $ 124,198,396 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Current Assets | ||
Accounts receivable, allowances | $ 389,000 | $ 430,000 |
Shareholders' Equity | ||
Voting Preferred Stock, no par value (in dollars per share) | $ 0 | $ 0 |
Voting Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Nonvoting Preferred Stock, no par value (in dollars per share) | $ 0 | $ 0 |
Nonvoting Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common Stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common Stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, shares issued (in shares) | 8,952,961 | 8,950,827 |
Common Stock, shares outstanding (in shares) | 6,258,233 | 6,256,098 |
Treasury Stock, shares (in shares) | 2,694,729 | 2,694,729 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ||
Net sales | $ 36,043,295 | $ 33,101,657 |
Cost of products sold | (27,755,136) | (26,681,211) |
Gross margin | 8,288,159 | 6,420,446 |
Selling and administrative expenses | (6,051,958) | (5,459,582) |
Operating profit | 2,236,201 | 960,864 |
Interest expense | (21,024) | (36,285) |
Other income | 19,653 | 21,374 |
Income before income taxes | 2,234,830 | 945,953 |
Income taxes | 717,689 | 297,880 |
Net income | $ 1,517,141 | $ 648,073 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.24 | $ 0.10 |
Diluted (in dollars per share) | 0.24 | 0.10 |
Cash dividends per share: (in dollars per share) | $ 0.11 | $ 0.11 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||
Net income | $ 1,517,141 | $ 648,073 |
Other comprehensive (loss) income: | ||
Change in foreign currency translation | 471,971 | 177,787 |
Change in marketable securities, net of tax benefit of: 2017 - ($792) 2016 - $ - | (1,451) | 0 |
Change in pension and postretirement benefit costs, net of tax expense of: 2017 - $112,864 2016 - $233,167 | 206,683 | 424,531 |
Total other comprehensive (loss) income | 677,203 | 602,318 |
Comprehensive income | $ 2,194,344 | $ 1,250,391 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Other comprehensive (loss) income: | ||
Change in marketable securities, income taxes expense (benefit) | $ (792) | $ 0 |
Change in pension and postretirement benefit costs, income taxes (expense)/benefit | $ 112,864 | $ 233,167 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Operating Activities | ||
Net income | $ 1,517,141 | $ 648,073 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 955,614 | 928,136 |
Unrecognized pension & other postretirement benefits | 127,926 | 851,929 |
(Gain)/loss on sale of equipment and other assets | 33,098 | 19,780 |
Provision for doubtful accounts | 6,381 | 0 |
Issuance of common stock for directors' fees | 41,509 | 39,601 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,719,513) | (339,041) |
Inventories | 1,689,822 | 1,254,683 |
Prepaid expenses and other | (84,755) | (127,991) |
Other assets | (35,208) | (19,977) |
Accounts payable | 901,500 | (1,336,219) |
Accrued compensation | (1,321,648) | (1,099,262) |
Other accrued expenses | 279,730 | (161,982) |
Net cash provided by operating activities | 2,391,597 | 657,730 |
Investing Activities | ||
Marketable securities | (215,923) | 0 |
Purchases of property, plant and equipment | (487,169) | (338,270) |
Net cash used in investing activities | (703,092) | (338,270) |
Financing Activities | ||
Principal payments on long-term debt | (357,142) | (714,285) |
Dividends paid | (688,340) | (687,439) |
Net cash used in financing activities | (1,045,482) | (1,401,724) |
Effect of exchange rate changes on cash | 212,902 | (4,636) |
Net change in cash and cash equivalents | 855,925 | (1,086,900) |
Cash and cash equivalents at beginning of period | 22,725,376 | 17,814,986 |
Cash and cash equivalents at end of period | $ 23,581,301 | $ 16,728,086 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 01, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note A – Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. Refer to the Company’s consolidated financial statements and notes thereto included in its Form 10-K for the year ended December 31, 2016 for additional information. The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interim periods have been reflected therein. All intercompany accounts and transactions are eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet at that date. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note B – Earnings Per Share The denominators used in the earnings per share computations follow: Three Months Ended April 1, 2017 April 2, 2016 Basic: Weighted average shares outstanding 6,256,496 6,247,760 Diluted: Weighted average shares outstanding 6,256,496 6,247,760 Dilutive stock options - - Denominator for diluted earnings per share 6,256,496 6,247,760 |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2017 | |
Inventories [Abstract] | |
Inventories | Note C – Inventories The components of inventories follow: April 1, 2017 December 31, 2016 Raw material and component parts $ 8,433,550 $ 8,829,236 Work in process 6,799,146 7,118,149 Finished goods 17,272,507 18,082,901 $ 32,505,203 $ 34,030,286 |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2017 | |
Segment Information [Abstract] | |
Segment Information | Note D – Segment Information Segment financial information follows: Three Months Ended April 1, 2017 April 2, 2016 Revenues: Sales to unaffiliated customers: Industrial Hardware $ 15,442,825 $ 14,591,513 Security Products 13,917,489 14,197,217 Metal Products 6,682,981 4,312,927 $ 36,043,295 $ 33,101,657 Income before income taxes: Industrial Hardware $ 566,792 $ 697,196 Security Products 994,437 1,128,196 Metal Products 674,972 (864,528 ) Operating Profit 2,236,201 960,864 Interest expense (21,024 ) (36,285 ) Other income 19,653 21,374 Income before income taxes $ 2,234,830 $ 945,953 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 01, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note E – Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-01, Business Combinations – Clarifying the Definition of a business. ASU 2017-01 provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is in the process of determining the effect that the adoption of ASU 2017-01 will have on the accompanying financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other: Simplifying the test for Goodwill Impairment. ASU 2017-04 provides guidance to simplify the subsequent measure of goodwill by eliminating Step 2 from the goodwill impairment test. The amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period after January 1, 2017. The Company is in the process of determining the effect that the adoption of ASU 2017-04 will have on the accompanying financial statements. In February 2017, the FASB issued ASU No. 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. ASU 2017-06 provides guidance for reporting by an employee benefit plan for its interest in a master trust. The amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied retrospectively with earlier application permitted as of the beginning of an interim or annual reporting period after December 15, 2018. The Company is in the process of determining the effect that the adoption of ASU 2017-06 will have on the accompanying financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 provides guidance to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendment should be applied retrospectively with earlier application permitted as of the beginning of an interim or annual reporting period after December 15, 2017. The Company is in the process of determining the effect that the adoption of ASU 2017-06 will have on the accompanying financial statements. The Company has implemented all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact on the consolidated financial statements of the Company. |
Debt
Debt | 3 Months Ended |
Apr. 01, 2017 | |
Debt [Abstract] | |
Debt | Note F – Debt On January 29, 2010, the Company signed a secured Loan Agreement (the “Loan Agreement”) with People’s United Bank (“People’s”) which included a $5,000,000 term portion (the “Original Term Loan”) and a $10,000,000 revolving credit portion. On January 25, 2012, the Company amended the loan agreement by taking an additional $5,000,000 term loan (the “2012 Term Loan”). Interest on the Original Term Loan portion of the Loan Agreement is fixed at 4.98%. Interest on the 2012 Term Loan is fixed at 3.90%. The interest rate on the revolving credit portion of the Loan Agreement varied based on the LIBOR rate or People’s Prime rate plus a margin spread of 2.25%, with a floor rate of 3.25% and a maturity date of January 31, 2014. On January 23, 2014, the Company signed an amendment to its secured Loan Agreement with People’s which extended the maturity date of the $10,000,000 revolver portion of the Loan Agreement to July 1, 2016 and changed the interest rate to LIBOR plus 2.25%, eliminating the floor previously in place. On June 9, 2016, the Company signed a third amendment to its secured Loan Agreement which extended the maturity date of the $10,000,000 revolver portion of the Loan Agreement to July 1, 2018. The Company did not utilize the revolving credit facility during Fiscal 2016 or during the first three months of 2017. The Company has loan covenants under the Loan Agreement which required the Company to maintain a fixed charge coverage ratio of at least 1.1 to 1, and minimum tangible net worth of $55 million. In addition, the Company has restrictions on, among other things, new capital leases, purchases or redemptions of its capital stock, mergers and divestitures, and new borrowing. The Company was in compliance with all covenants in 2016 and for the three month period ended April 1, 2017. On April 3, 2017, the Company signed an amended and restated loan agreement (the “Restated Loan Agreement”) with People’s United Bank that included a $31 million term portion and a $10 million revolving credit portion. Proceeds of the loan were used to repay the remaining outstanding term loan of the Company (approximately $1,429,000) and to acquire 100% of the common stock of Velvac Holdings, Inc. (see Note M). The term portion of the loan requires quarterly principal payments of $387,500 for a two-year period beginning July 3, 2017. The repayment amount then increases to $775,000 per quarter beginning July 1, 2019. The term loan is a five-year loan with the remaining balance due on March 1, 2022. The revolving credit portion has a quarterly commitment fee ranging from 0.2% to 0.375% based on operating results. Under the terms of the Restated Loan Agreement, this rate will be 0.25% for the first six months. The revolving credit portion has a maturity date of April 1, 2022. On April 3, 2017, the Company borrowed approximately $6.6 million on the revolving credit facility. The interest rates on the term and revolving credit portion of the Restated Loan Agreement vary. The interest rates may vary based on the LIBOR rate plus a margin spread of 1.75% to 2.50%. The margin spread is based on operating results calculated on a rolling-four-quarter basis. The Company may also borrow funds at the lender’s prime rate. On April 3, 2017, the interest rate for one half ( $15.5 million) of the term portion was 2.98%, using a 1 month LIBOR rate and 3.15% on the remaining balance ($15.5 million) of the term loan based on a 3 month LIBOR rate. The interest rate on the first $5 million of the revolving credit portion was 2.98% with the remaining balance of approximately $1.6 million at 4.0%, the bank’s prime rate. The Company’s loan covenants under the Restated Loan Agreement require the Company to maintain a consolidated minimum debt service coverage ratio of at least 1.1 to 1 for periods through December 31, 2018 and 1.2 to 1 thereafter to be tested quarterly on a twelve-month trailing basis. In addition, the Company will be required to show a maximum total leverage ratio of 4.0x for periods through December 31, 2018, 3.5x for the period January 1, 2019 through December 31, 2019, 3.25x for the period January 1, 2020 through December 31, 2020 and 3.0x thereafter. On April 4, 2017, the Company entered into an interest rate swap contract with the lender with an original notational amount of $15,500,000, which is equal to 50% of the outstanding balance of the term loan on that date. The notational amount will decrease on a quarterly basis beginning July 3, 2017 following the principal repayment schedule of the term loan. The Company has a fixed interest rate of 1.92% on the swap contract and will pay the difference between the fixed rate and LIBOR when LIBOR is below 1.92% and will receive interest when the LIBOR rate exceeds 1.92%. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill [Abstract] | |
Goodwill | Note G – Goodwill The following is a roll-forward of goodwill from year-end 2016 to the end of the first quarter 2017: Industrial Hardware Segment Security Products Segment Metal Products Segment Total Beginning balance $ 1,760,793 $ 13,059,042 $ — $ 14,819,835 Foreign exchange 7,553 — — 7,553 Ending balance $ 1,768,346 $ 13,059,042 $ — $ 14,827,388 |
Intangibles
Intangibles | 3 Months Ended |
Apr. 01, 2017 | |
Intangibles [Abstract] | |
Intangibles | Note H – Intangibles The gross carrying amount and accumulated amortization of amortizable intangible assets: Industrial Hardware Segment Security Products Segment Metal Products Segment Total Weighted-Average Amortization Period (Years) 2017 Gross Amount Patents and developed technology $ 2,166,937 $ 1,046,299 $ -- $ 3,213,236 15.5 Customer relationships -- 449,706 -- 449,706 5.0 Non-compete agreements -- 407,000 -- 407,000 5.0 Intellectual property -- 307,370 -- 307,370 5.0 Total Gross Intangibles $ 2,166,937 $ 2,210,375 $ -- $ 4,377,312 12.3 2017 Accumulated Amortization Patents and developed technology $ 1,550,992 $ 615,671 $ -- $ 2,166,663 Customer relationships -- 202,368 -- 202,368 Non-compete agreements -- 183,150 -- 183,150 Intellectual property -- 138,316 -- 138,316 Accumulated Amortization $ 1,550,992 $ 1,139,505 $ -- $ 2,690,497 Net April 1, 2017 per Balance Sheet $ 615,945 $ 1,070,870 $ -- $ 1,686,815 2016 Gross Amount Patents and developed technology $ 2,159,060 $ 1,035,374 $ -- $ 3,194,434 15.6 Customer relationships -- 449,706 -- 449,706 5.0 Non-compete agreements -- 407,000 -- 407,000 5.0 Intellectual property -- 307,370 -- 307,370 5.0 Total Gross Intangibles $ 2,159,060 $ 2,199,450 $ -- $ 4,358,510 12.3 2016 Accumulated Amortization Patents and developed technology $ 1,529,675 $ 598,756 $ -- $ 2,128,431 Customer relationships -- 179,882 -- 179,882 Non-compete agreements -- 162,800 -- 162,800 Intellectual property -- 122,948 -- 122,948 Accumulated Amortization $ 1,529,675 $ 1,064,386 $ -- $ 2,594,061 Net December 31, 2016 per Balance Sheet $ 629,385 $ 1,135,064 $ -- $ 1,764,449 |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Apr. 01, 2017 | |
Retirement Benefit Plans [Abstract] | |
Retirement Benefit Plans | Note I – Retirement Benefit Plans The Company has non-contributory defined benefit pension plans covering certain U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded nonqualified supplemental retirement plans that provide certain current and former officers with benefits in excess of limits imposed by federal tax law. The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements. Effective for the Fiscal 2017 year expense, the Company changed the method used to measure Service Cost and Interest Cost for pension and other postretirement benefits for our plans. Previously, we measured interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations. For 2017, interest costs will be measured by applying the specific spot rates along the yield curve to the plans’ corresponding discounted cash flows that comprise the obligation (i.e., the Spot Rate approach). The new method provides a more precise measurement of interest costs by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve; the measurement of our pension and other postretirement benefit obligations is not affected. We have accounted for this change as a change in accounting estimate, which is applied prospectively. Consequently, combined pension expense for the Company’s pension plans and other postretirement plan under the Spot Rate approach for the three-month period ended April 1, 2017 is approximately $135,000 lower when compared to the prior approach. Significant disclosures relating to these benefit plans for the first quarter of fiscal 2017 and 2016 follow: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended April 1, 2017 April 2, 2016 April 1, 2017 April 2, 2016 Service cost $ 317,360 $ 813,005 $ 6,847 $ 10,750 Interest cost 791,057 766,580 20,207 20,500 Expected return on plan assets (1,195,895 ) (1,243,941 ) (12,874 ) (11,750 ) Amortization of prior service cost 36,438 50,143 (5,361 ) (6,000 ) Amortization of the net loss 307,870 627,055 (19,400 ) (13,500 ) Net periodic benefit cost $ 256,830 $ 1,012,842 $ (10,581 ) $ -- The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In 2017, the Company expects to contribute $700,000 into its pension plans and $103,000 into its postretirement plan. As of April 1, 2017, the Company has not made contributions into its pension plans and has contributed $45,000 to its postretirement plan and will make the remaining contributions as required during the remainder of the year. The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. The plan allows participants to make voluntary contributions of up to 100% of their annual compensation on a pretax basis, subject to IRS limitations. The plan provides for contributions by the Company at its discretion. This contribution rate is currently 50% of the first 6% of contributions by eligible participants. The plan also provides for a transitional credit ranging from 0% to 4% to certain eligible emplyees who were active participants of the Salaried Retirement Plan at the time that benefits under the plan were frozen in Fiscal 2016, and a non-discretionary 3% of contributions to all eligible employees. The Company made contributions to the plan as follows: For the Three Months Ended April 1, 2017 April 2, 2016 Regular matching contribution $ 116,475 $ 56,231 Transitional credit contribution 135,370 -- Non-discretionary contribution 307,568 51,470 Total contributions made for the period $ 559,413 $ 107,701 The non-discretionary contributions made in each of the periods disclosed above were expensed in the prior fiscal year. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Apr. 01, 2017 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note J – Stock Based Compensation The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to its employees and directors, including employee stock options and restricted stock awards. The Company estimates the fair value of stock options granted using the Black-Scholes valuation model. This model requires the Company to make estimates and assumptions including, among other things, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of our common stock price and the number of options that will be forfeited prior to vesting. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Changes in these estimates and assumptions can materially affect the determination of the fair value of stock-based compensation and consequently, the related amount recognized in the Company’s consolidated statements of operations. As of April 1, 2017, the Company had one stock option plan, the 2010 plan, for officers, other key employees, and non-employee directors. Incentive stock options granted under the 2010 plan must have exercise prices that are not less than 100% of the fair market value of the stock on the dates the options are granted. Restricted stock awards may also be granted to participants under the 2010 plan with restrictions determined by the Compensation Committee of the Company’s Board of Directors. Under the 2010 plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company’s Board of Directors. No options or restricted stock were granted in the first quarter of 2017 or 2016. The 2010 plan also permits the issuance of Stock Appreciation Rights (“SARs”). The rights are in the form of an option with a cashless exercise price equal to the fair value of the Company’s stock at the date of grant. During the first quarter of 2017, the Company issued 62,000 SARs at an exercise price of $19.10. The SARs will vest over a three-year period and some are subject to meeting performance measurements. When exercised, the Company will issue shares of Company stock with a value equal to the difference between the closing stock price on the date of exercise and the exercise price of the SAR’s. Stock-based compensation expense in connection with SARs granted to employees and directors in the first quarter of Fiscal 2017 was approximately $7,000. As of April 1, 2017, there were 438,000 shares of common stock reserved and available for future grant under the above noted 2010 plan. Three Months Ended April 1, 2017 Year Ended December 31, 2016 Shares Weighted - Average Exercise Price Shares Weighted - Average Exercise Price Outstanding at beginning of period -- $ -- -- $ -- Issued 62,000 19.10 -- -- Outstanding at end of period 62,000 19.10 -- -- SARs Outstanding and Exercisable Range of Exercise Prices Outstanding as of April 1, 2017 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ 19.10 -- 4.8 $ 19.10 At April 1, 2017, outstanding and exercisable SARs had an intrinsic value of $0. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note K – Income Taxes The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2013 and non-U.S. income tax examinations by tax authorities prior to 2010. The total amount of unrecognized tax benefits could increase or decrease within the next twelve months for a number of reasons, including the closure of federal, state and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB Accounting Standards Codification (“ASC”) 740. There have been no significant changes to the amount of unrecognized tax benefits during the three months ended April 1, 2017. The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Apr. 01, 2017 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | Note L - Financial Instruments and Fair Value Measurements Financial Risk Management Objectives and Policies The Company is exposed primarily to credit, interest rate and currency exchange rate risks which arise in the normal course of business. Credit Risk Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Company, as and when they become due. The primary credit risk for the Company is its receivable accounts with customers. The Company has established credit limits for customers and monitors their balances to mitigate the risk of loss. At April 1, 2017 and December 31, 2016, there were no significant concentrations of credit risk. No one customer represented more than 10% of the Company’s net trade receivables at April 1, 2017 or at December 31, 2016. The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable. Interest Rate Risk On April 1, 2017, the Company has no exposure to the risk of changes in market interest rates as the interest rate on the outstanding term debt is fixed at 3.90%. Fair Value Measurements Assets and liabilities that require fair value measurement are recorded at fair value using market and income valuation approaches and considering the Company’s and counterparty’s credit risk. The Company uses the market approach and the income approach to value assets and liabilities as appropriate. There are no assets or liabilities requiring fair value measurements on April 1, 2017 or December 31, 2016 except for the marketable securities, a level 1 asset, which are immaterial to the total assets of the Company. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Apr. 01, 2017 | |
Subsequent Event [Abstract] | |
Subsequent Event [Text Block] | Note M – Subsequent Event On April 3, 2017, the Company entered into Securities Purchase Agreement (the “Securities Purchase Agreement”) with Velvac Holdings, Inc., a Delaware corporation (“Velvec”), and specific individuals (collectively, the “Sellers”). Pursuant to the Securities Purchase Agreement, the Company acquired 100% of the issued and outstanding stock of Velvec from the Sellers (the “Acquisition”) for $39.5 million and an earnout consideration contingent upon Velvac achieving minimum earnings performance levels and based on sales of Velvac’s new proprietary Road-iQ product line (the “Earnout Consideration”). Velvac is a premier designer and manufacturer of proprietary vision technology for original equipment manufacturers serving the heavy-duty and medium-duty truck, motorhome, and bus markets. Approximately two-thirds of Velvac’s sales are represented by proprietary mirrors and camera-enabled vision systems that provide substantial value to their customers. The remaining one-third of sales are represented by aftermarket components. Velvac recorded net sales of approximately $60 million for Fiscal year 2016. Velvac maintains manufacturing operations in Reynoso, Mexico and has distribution facilities at its headquarters in New Berlin, Wisconsin; in El Paso, Texas; Anaheim, California; and in Toronto, Ontario, Canada. Velvac also operates a facility in Bellingham, Washington in connection with the development of the new Road-iQ product line. On April 3, 2017, the Company signed an amended and restated loan agreement (the “Loan Agreement”) with People’s United Bank that included a $31 million term portion and a $10 million revolving credit portion. Proceeds of the loan were used to repay the remaining outstanding term loan of the Company (approximately $1,429,000) and to acquire 100% of the common stock of Velvac Holdings, Inc. The term portion of the loan requires quarterly principal payments of $387,500 for a two-year period beginning July 3, 2017. The repayment amount then increases to $775,000 per quarter beginning July 1, 2019. The term loan is a five-year loan with the remaining balance due on March 1, 2022. The revolving credit portion has a quarterly commitment fee ranging from 0.2% to 0.375% based on operating results. Under the terms of the Agreement, this rate will be 0.25% for the first six months. The revolving credit portion has a maturity date of April 1, 2022. On April 3, 2017, the Company borrowed approximately $6.6 million on the revolving credit facility. On April 4, 2017, the Company entered into an interest rate swap contract with the lender with an original notational amount of $15,500,000, which is equal to 50% of the outstanding balance of the term loan on that date. The notational amount will decrease on a quarterly basis beginning July 3, 2017 following the principal repayment schedule of the term loan. The Company has a fixed interest rate of 1.92% on the swap contract and will pay the difference between the fixed rate and LIBOR when LIBOR is below 1.92% and will receive interest when the LIBOR rate exceeds 1.92%. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Denominators used in the earnings per share computations | The denominators used in the earnings per share computations follow: Three Months Ended April 1, 2017 April 2, 2016 Basic: Weighted average shares outstanding 6,256,496 6,247,760 Diluted: Weighted average shares outstanding 6,256,496 6,247,760 Dilutive stock options - - Denominator for diluted earnings per share 6,256,496 6,247,760 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Inventories [Abstract] | |
Components of inventories | The components of inventories follow: April 1, 2017 December 31, 2016 Raw material and component parts $ 8,433,550 $ 8,829,236 Work in process 6,799,146 7,118,149 Finished goods 17,272,507 18,082,901 $ 32,505,203 $ 34,030,286 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Segment Information [Abstract] | |
Segment financial information | Segment financial information follows: Three Months Ended April 1, 2017 April 2, 2016 Revenues: Sales to unaffiliated customers: Industrial Hardware $ 15,442,825 $ 14,591,513 Security Products 13,917,489 14,197,217 Metal Products 6,682,981 4,312,927 $ 36,043,295 $ 33,101,657 Income before income taxes: Industrial Hardware $ 566,792 $ 697,196 Security Products 994,437 1,128,196 Metal Products 674,972 (864,528 ) Operating Profit 2,236,201 960,864 Interest expense (21,024 ) (36,285 ) Other income 19,653 21,374 Income before income taxes $ 2,234,830 $ 945,953 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill [Abstract] | |
Roll-forward of goodwill | The following is a roll-forward of goodwill from year-end 2016 to the end of the first quarter 2017: Industrial Hardware Segment Security Products Segment Metal Products Segment Total Beginning balance $ 1,760,793 $ 13,059,042 $ — $ 14,819,835 Foreign exchange 7,553 — — 7,553 Ending balance $ 1,768,346 $ 13,059,042 $ — $ 14,827,388 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Intangibles [Abstract] | |
Gross carrying amount and accumulated amortization of amortizable intangible assets | The gross carrying amount and accumulated amortization of amortizable intangible assets: Industrial Hardware Segment Security Products Segment Metal Products Segment Total Weighted-Average Amortization Period (Years) 2017 Gross Amount Patents and developed technology $ 2,166,937 $ 1,046,299 $ -- $ 3,213,236 15.5 Customer relationships -- 449,706 -- 449,706 5.0 Non-compete agreements -- 407,000 -- 407,000 5.0 Intellectual property -- 307,370 -- 307,370 5.0 Total Gross Intangibles $ 2,166,937 $ 2,210,375 $ -- $ 4,377,312 12.3 2017 Accumulated Amortization Patents and developed technology $ 1,550,992 $ 615,671 $ -- $ 2,166,663 Customer relationships -- 202,368 -- 202,368 Non-compete agreements -- 183,150 -- 183,150 Intellectual property -- 138,316 -- 138,316 Accumulated Amortization $ 1,550,992 $ 1,139,505 $ -- $ 2,690,497 Net April 1, 2017 per Balance Sheet $ 615,945 $ 1,070,870 $ -- $ 1,686,815 2016 Gross Amount Patents and developed technology $ 2,159,060 $ 1,035,374 $ -- $ 3,194,434 15.6 Customer relationships -- 449,706 -- 449,706 5.0 Non-compete agreements -- 407,000 -- 407,000 5.0 Intellectual property -- 307,370 -- 307,370 5.0 Total Gross Intangibles $ 2,159,060 $ 2,199,450 $ -- $ 4,358,510 12.3 2016 Accumulated Amortization Patents and developed technology $ 1,529,675 $ 598,756 $ -- $ 2,128,431 Customer relationships -- 179,882 -- 179,882 Non-compete agreements -- 162,800 -- 162,800 Intellectual property -- 122,948 -- 122,948 Accumulated Amortization $ 1,529,675 $ 1,064,386 $ -- $ 2,594,061 Net December 31, 2016 per Balance Sheet $ 629,385 $ 1,135,064 $ -- $ 1,764,449 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Retirement Benefit Plans [Abstract] | |
Significant disclosures relating to benefit plans | Significant disclosures relating to these benefit plans for the first quarter of fiscal 2017 and 2016 follow: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended April 1, 2017 April 2, 2016 April 1, 2017 April 2, 2016 Service cost $ 317,360 $ 813,005 $ 6,847 $ 10,750 Interest cost 791,057 766,580 20,207 20,500 Expected return on plan assets (1,195,895 ) (1,243,941 ) (12,874 ) (11,750 ) Amortization of prior service cost 36,438 50,143 (5,361 ) (6,000 ) Amortization of the net loss 307,870 627,055 (19,400 ) (13,500 ) Net periodic benefit cost $ 256,830 $ 1,012,842 $ (10,581 ) $ -- |
Defined Contribution Plan | The Company made contributions to the plan as follows: For the Three Months Ended April 1, 2017 April 2, 2016 Regular matching contribution $ 116,475 $ 56,231 Transitional credit contribution 135,370 -- Non-discretionary contribution 307,568 51,470 Total contributions made for the period $ 559,413 $ 107,701 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Stock Based Compensation [Abstract] | |
Stock appreciation rights activity | As of April 1, 2017, there were 438,000 shares of common stock reserved and available for future grant under the above noted 2010 plan. Three Months Ended April 1, 2017 Year Ended December 31, 2016 Shares Weighted - Average Exercise Price Shares Weighted - Average Exercise Price Outstanding at beginning of period -- $ -- -- $ -- Issued 62,000 19.10 -- -- Outstanding at end of period 62,000 19.10 -- -- |
Schedule of stock appreciation rights outstanding and exercisable | SARs Outstanding and Exercisable Range of Exercise Prices Outstanding as of April 1, 2017 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ 19.10 -- 4.8 $ 19.10 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Basic [Abstract] | ||
Weighted average shares outstanding (in shares) | 6,256,496 | 6,247,760 |
Diluted [Abstract] | ||
Weighted average shares outstanding (in shares) | 6,256,496 | 6,247,760 |
Dilutive stock options (in shares) | 0 | 0 |
Denominator for diluted earnings per share (in shares) | 6,256,496 | 6,247,760 |
Inventories (Details)
Inventories (Details) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Components of inventories [Abstract] | ||
Raw material and component parts | $ 8,433,550 | $ 8,829,236 |
Work in process | 6,799,146 | 7,118,149 |
Finished goods | 17,272,507 | 18,082,901 |
Inventories, net | $ 32,505,203 | $ 34,030,286 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Segment Reporting Information [Line Items] | ||
Revenues, sales to unaffiliated customers | $ 36,043,295 | $ 33,101,657 |
Operating Profit | 2,236,201 | 960,864 |
Interest expense | (21,024) | (36,285) |
Other income | 19,653 | 21,374 |
Income before income taxes | 2,234,830 | 945,953 |
Industrial Hardware [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, sales to unaffiliated customers | 15,442,825 | 14,591,513 |
Operating Profit | 566,792 | 697,196 |
Security Products [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, sales to unaffiliated customers | 13,917,489 | 14,197,217 |
Operating Profit | 994,437 | 1,128,196 |
Metal Products [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, sales to unaffiliated customers | 6,682,981 | 4,312,927 |
Operating Profit | $ 674,972 | $ (864,528) |
Debt (Details)
Debt (Details) | Apr. 04, 2017USD ($) | Apr. 03, 2017USD ($) | Jan. 23, 2014USD ($) | Jan. 29, 2010USD ($) | Sep. 30, 2019USD ($) | Apr. 01, 2017USD ($) | Jun. 30, 2019USD ($) | Jan. 25, 2012USD ($) |
Velvac Holdings, Inc [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of common stock acquired | 100.00% | |||||||
Restated Loan Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Leverage ratio as multiple, through 2018 | 4 | |||||||
Leverage ratio as multiple, through 2019 | 3.5 | |||||||
Leverage ratio as multiple, through 2020 | 3.25 | |||||||
Leverage ratio as multiple, there after | 3 | |||||||
Restated Loan Agreement [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio as multiple, 2018 | 1.1 | |||||||
Fixed charge coverage ratio as multiple, thereafter | 1.2 | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 5,000,000 | |||||||
Fixed rate of interest | 4.98% | |||||||
Term Loan [Member] | Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Quarterly principal payment | $ 775,000 | $ 387,500 | ||||||
Term Loan [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 31,000,000 | |||||||
Maturity date of loan | Mar. 1, 2022 | |||||||
Borrowing under credit facility | $ 1,429,000 | |||||||
Period for quarterly principal payment | 2 years | |||||||
Term of loan | 5 years | |||||||
Term Loan [Member] | Interest Rate Swap [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate of interest | 1.92% | |||||||
Original notional amount | $ 15,500,000 | |||||||
Percentage of outstanding balance of term loan | 50.00% | |||||||
Term Loan [Member] | 1 Month LIBOR [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate of interest | 2.98% | |||||||
Borrowing under credit facility | $ 15,500,000 | |||||||
Term of variable rate | 1 month | |||||||
Term Loan [Member] | 3 Month LIBOR [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate of interest | 3.15% | |||||||
Borrowing under credit facility | $ 15,500,000 | |||||||
Term of variable rate | 3 months | |||||||
Revolving Credit Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | |||||
Maturity date of loan | Jul. 1, 2016 | Jul. 1, 2018 | ||||||
Revolving Credit Loan [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 10,000,000 | |||||||
Maturity date of loan | Apr. 1, 2022 | |||||||
Borrowing under credit facility | $ 6,600,000 | |||||||
Quarterly commitment fee percentage | 0.25% | |||||||
Commitment fee percentage for first six months | 0.25% | |||||||
Revolving Credit Loan [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Quarterly commitment fee percentage | 0.20% | |||||||
Revolving Credit Loan [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Quarterly commitment fee percentage | 0.375% | |||||||
Revolving Credit Loan [Member] | Velvac Holdings, Inc [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing under credit facility | $ 1,429,000 | |||||||
Revolving Credit Loan [Member] | Interest Rate Swap [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate of interest | 1.92% | |||||||
Original notional amount | $ 15,500,000 | |||||||
Revolving Credit Loan [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Revolving Credit Loan [Member] | LIBOR [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate of interest | 2.98% | |||||||
Borrowing under credit facility | $ 5,000,000 | |||||||
Revolving Credit Loan [Member] | LIBOR [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Revolving Credit Loan [Member] | LIBOR [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Revolving Credit Loan [Member] | Prime Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Floor rate of loan | 3.25% | |||||||
Revolving Credit Loan [Member] | Prime Rate [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed rate of interest | 4.00% | |||||||
Borrowing under credit facility | $ 1,600,000 | |||||||
Revolving Credit Loan [Member] | Floor Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Floor rate of loan | 3.25% | |||||||
Loan Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio as multiple | 1.1 | |||||||
Tangible net worth | $ 55,000,000 | |||||||
Term Loan 2012 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 5,000,000 | |||||||
Fixed rate of interest | 3.90% | 3.90% |
Goodwill (Details)
Goodwill (Details) | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,819,835 |
Foreign exchange | 7,553 |
Ending balance | 14,827,388 |
Industrial Hardware Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 1,760,793 |
Foreign exchange | 7,553 |
Ending balance | 1,768,346 |
Security Products Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 13,059,042 |
Foreign exchange | 0 |
Ending balance | 13,059,042 |
Metal Products Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Foreign exchange | 0 |
Ending balance | $ 0 |
Intangibles (Details)
Intangibles (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 01, 2017 | Dec. 31, 2016 | |
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 4,377,312 | $ 4,358,510 |
Accumulated Amortization | 2,690,497 | 2,594,061 |
Net as per Balance Sheet | $ 1,686,815 | $ 1,764,449 |
Weighted Average Amortization Period | 12 years 3 months 18 days | 12 years 3 months 18 days |
Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 2,166,937 | $ 2,159,060 |
Accumulated Amortization | 1,550,992 | 1,529,675 |
Net as per Balance Sheet | 615,945 | 629,385 |
Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 2,210,375 | 2,199,450 |
Accumulated Amortization | 1,139,505 | 1,064,386 |
Net as per Balance Sheet | 1,070,870 | 1,135,064 |
Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Net as per Balance Sheet | 0 | 0 |
Patents and Developed Technology [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 3,213,236 | 3,194,434 |
Accumulated Amortization | $ 2,166,663 | $ 2,128,431 |
Weighted Average Amortization Period | 15 years 6 months | 15 years 7 months 6 days |
Patents and Developed Technology [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 2,166,937 | $ 2,159,060 |
Accumulated Amortization | 1,550,992 | 1,529,675 |
Patents and Developed Technology [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 1,046,299 | 1,035,374 |
Accumulated Amortization | 615,671 | 598,756 |
Patents and Developed Technology [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Customer Relationships [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 449,706 | 449,706 |
Accumulated Amortization | $ 202,368 | $ 179,882 |
Weighted Average Amortization Period | 5 years | 5 years |
Customer Relationships [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 0 | $ 0 |
Accumulated Amortization | 0 | 0 |
Customer Relationships [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 449,706 | 449,706 |
Accumulated Amortization | 202,368 | 179,882 |
Customer Relationships [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Non-compete Agreements [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 407,000 | 407,000 |
Accumulated Amortization | $ 183,150 | $ 162,800 |
Weighted Average Amortization Period | 5 years | 5 years |
Non-compete Agreements [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 0 | $ 0 |
Accumulated Amortization | 0 | 0 |
Non-compete Agreements [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 407,000 | 407,000 |
Accumulated Amortization | 183,150 | 162,800 |
Non-compete Agreements [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Intellectual Property [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 307,370 | 307,370 |
Accumulated Amortization | $ 138,316 | $ 122,948 |
Weighted Average Amortization Period | 5 years | 5 years |
Intellectual Property [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 0 | $ 0 |
Accumulated Amortization | 0 | 0 |
Intellectual Property [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 307,370 | 307,370 |
Accumulated Amortization | 138,316 | 122,948 |
Intellectual Property [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | $ 0 | $ 0 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Additional information [Abstract] | ||
Reduction in pension expense | $ 135,000 | |
Pension Benefits [Member] | ||
Components of the net periodic benefit cost [Abstract] | ||
Service cost | 317,360 | $ 813,005 |
Interest cost | 791,057 | 766,580 |
Expected return on plan assets | (1,195,895) | (1,243,941) |
Amortization of prior service cost | 36,438 | 50,143 |
Amortization of the net loss | 307,870 | 627,055 |
Net periodic benefit cost | 256,830 | 1,012,842 |
Additional information [Abstract] | ||
Contributions required by the Company in defined benefit plan | 103,000 | |
Postretirement Benefits [Member] | ||
Components of the net periodic benefit cost [Abstract] | ||
Service cost | 6,847 | 10,750 |
Interest cost | 20,207 | 20,500 |
Expected return on plan assets | (12,874) | (11,750) |
Amortization of prior service cost | (5,361) | (6,000) |
Amortization of the net loss | (19,400) | (13,500) |
Net periodic benefit cost | (10,581) | $ 0 |
Additional information [Abstract] | ||
Contributions required by the Company in defined benefit plan | 700,000 | |
Employer contributions made | $ 45,000 |
Retirement Benefit Plans, Defin
Retirement Benefit Plans, Defined Contribution Plan (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Total contributions made for the period | $ 559,413 | $ 107,701 |
Regular Matching Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total contributions made for the period | 116,475 | 56,231 |
Transitional Credit Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total contributions made for the period | 135,370 | 0 |
Non-discretionary Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total contributions made for the period | $ 307,568 | $ 51,470 |
Plan 401K Plan Original [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution percentage | 50.00% | |
Plan 401 K Plan Amendment [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of voluntary contributions allowed to participants, maximum | 100.00% | |
Increase in employer matching contribution on first of total employee contributions, percentage | 6.00% | |
Non-discretionary contribution percentage for employees who were not eligible to participate in the salaried plan | 3.00% | |
U.S. Non Union Employees [Member] | Minimum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Non-discretionary contribution percentage for certain employees who were eligible to participate in the salaried plan | 0.00% | |
U.S. Non Union Employees [Member] | Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Non-discretionary contribution percentage for certain employees who were eligible to participate in the salaried plan | 4.00% |
Stock Based Compensation (Detai
Stock Based Compensation (Details) | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2017USD ($)Plan$ / sharesshares | Apr. 02, 2016$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans that have shares reserved for further issuance | Plan | 1 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of fair market value of stock on grant date for exercise price | 100.00% | ||
Stock Options [Member] | |||
Number of Shares [Roll Forward] | |||
Options granted (in shares) | 0 | 0 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted (in shares) | 0 | 0 | |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock-based compensation expense | $ | $ 7,000 | ||
Number of Shares [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 0 | 0 | 0 |
Options granted (in shares) | 62,000 | 0 | |
Outstanding at end of period (in shares) | 62,000 | 0 | |
Weighted - Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 |
Issued (in dollars per share) | $ / shares | 19.10 | 0 | |
Outstanding at end of period (in dollars per share) | $ / shares | 19.10 | $ 0 | |
SARs Outstanding and Exercisable [Abstract] | |||
Range of Exercise Prices (in dollars per share) | $ / shares | $ 19.10 | ||
Outstanding as of April 1, 2017 | 0 | ||
Weighted- Average Remaining Contractual life | 4 years 9 months 18 days | ||
Weighted- Average Exercise Price (in dollars per share) | $ / shares | $ 19.10 | ||
Outstanding and exercisable, intrinsic value | $ | $ 0 | ||
2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grant (in shares) | 438,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Income Taxes [Abstract] | |
Significant changes to the amount of unrecognized tax benefits | $ 0 |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurements (Details) - Customer | Apr. 01, 2017 | Dec. 31, 2016 | Jan. 25, 2012 |
2012 Term Loan [Member] | |||
Interest Rate Risk [Abstract] | |||
Fixed rate of interest | 3.90% | 3.90% | |
Credit Concentration Risk [Member] | |||
Credit Risk [Abstract] | |||
Number of customers that represented more than 10% of trade receivables | 0 | 0 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Apr. 04, 2017 | Apr. 03, 2017 | Jan. 23, 2014 | Sep. 30, 2019 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Jun. 30, 2019 | Jan. 29, 2010 |
Subsequent Event [Line Items] | |||||||||
Net sales | $ 36,043,295 | $ 33,101,657 | |||||||
Term Loan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||||
Fixed rate of interest | 4.98% | ||||||||
Term Loan [Member] | Forecast [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Quarterly principal payment | $ 775,000 | $ 387,500 | |||||||
Revolving Credit Loan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||||
Maturity date of loan | Jul. 1, 2016 | Jul. 1, 2018 | |||||||
Velvac Holdings, Inc [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Net sales | $ 60,000,000 | ||||||||
Subsequent Event [Member] | Term Loan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Maximum borrowing capacity | $ 31,000,000 | ||||||||
Borrowing under credit facility | $ 1,429,000 | ||||||||
Period for quarterly principal payment | 2 years | ||||||||
Term of loan | 5 years | ||||||||
Maturity date of loan | Mar. 1, 2022 | ||||||||
Subsequent Event [Member] | Term Loan [Member] | Interest Rate Swap [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Original notional amount | $ 15,500,000 | ||||||||
Fixed rate of interest | 1.92% | ||||||||
Subsequent Event [Member] | Revolving Credit Loan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||
Borrowing under credit facility | $ 6,600,000 | ||||||||
Revolving credit portion commitment fee | 0.25% | ||||||||
Maturity date of loan | Apr. 1, 2022 | ||||||||
Subsequent Event [Member] | Revolving Credit Loan [Member] | Interest Rate Swap [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Original notional amount | $ 15,500,000 | ||||||||
Equal percentage of outstanding term loan | 50.00% | ||||||||
Fixed rate of interest | 1.92% | ||||||||
Subsequent Event [Member] | Revolving Credit Loan [Member] | Minimum [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Revolving credit portion commitment fee | 0.20% | ||||||||
Subsequent Event [Member] | Revolving Credit Loan [Member] | Maximum [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Revolving credit portion commitment fee | 0.375% | ||||||||
Subsequent Event [Member] | Velvac Holdings, Inc [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Percentage of common stock acquired | 100.00% | ||||||||
Purchase price of acquisition | $ 39,500,000 | ||||||||
Percentage of proprietary mirrors and camera-enabled vision systems | 66.66% | ||||||||
Percentage of aftermarket components | 33.33% | ||||||||
Subsequent Event [Member] | Velvac Holdings, Inc [Member] | Revolving Credit Loan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Borrowing under credit facility | $ 1,429,000 |